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Wor Ltd Issued 100 $100 000 Par Amount Debentures on 1

Question 3

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Wor Ltd issued 100 $100 000 par amount debentures on 1 January 20X3.The annual interest rate is 10% and the premium on issue was $5000 per debenture.The interest is paid in arrears on 31 December of each year.The debentures mature on 31 December 20X7.Wor Ltd has a financial year end of 30 June.
-What amount per debenture will be paid to investors when the debentures mature in 20X7?


A) $100 000
B) $105 000
C) $110 000
D) $115 000

Correct Answer:

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